US June import prices +0.3% vs -0.7% expectedUS housing starts for June 1.427 million versus 1.310 million estimate.US June industrial production +0.1% vs +0.2% expectedWhy Kimi K3 is adding to the market worriesUS July prelim UMich consumer sentiment 54.4 vs 51.0 expectedMeta weighs multibillion-dollar AI infrastructure deal with AnthropicBaker Hughes oil rig count up 7 to 452Iran targeted a ship trying to pass through Hormuz – TasnimTrump says he will add to Canadian tariffs due to wildfire smoke as two Minnesota fires cross into Canada
Markets:
Nasdaq down 1.3%WTI crude oil up $2.94 to $81.89US 10-year yields down 2 bps to 4.55%Gold up $42 to $4011CAD leads, GBP lagsS&P 500 down 0.9%
The starting point for the market on Friday was worries about Kimi K3, which is an open source model from Moonshot that’s hitting benchmarks close to the latest models from Anthropic and OpenAI. That led to some angst that the model layer has no moat and a broader chip selloff on fears that new models could render spending on training to be uneconomical. With that, chip names opened lower and the Nasdaq struggled.
Notably though, many chip names reversed shortly after the open and Micron ranged from $804 to $903 before closing at $847, down 0.7%. Nvidia was a loser down 2.3% as many of its chips are used for training rather than inference. All the Mag7 names save for Apple (which was flat) were lower.
In single-stock news, Netflix fell 7% on earnings and Intuitive Surgical plunged 14%.
Later, rising oil prices hurt the market. There were no signs of de-escalation into the weekend and both sides traded escalatory threats as strikes continued into the close. Oil finished at a one-month high and crack spreads continue to blow out.
Gold made something of a comeback as Goldman Sachs reported on central bank buying. It was notably lower earlier before finishing $50 above the bottom.
Late in the day, Trump threatened Canada with tarifs over wildfires but the market surmized he was blowing smoke and the loonie was the top performer.
On the week:
S&P 500 down 1.55%Nasdaq -2.9%DJIA -0.9%
This article was written by Adam Button at investinglive.com.